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3/28/2011 2:02PM

digits: eBay to Buy GSI Commerce

EBay is acquiring GSI Commerce, a provider of e-commerce and interactive marketing services, for $2.4 billion, as eBay looks to bulk up its online marketplace and payments service. Also: Amazon shares slump on the news.

This transcript has been automatically generated and may not be 100% accurate.

... I know that's what the day as saying in a multi billion dollar acquisition in the marketplace services area is eager to be enough to spruce up the online auction ... will tell you right have ... right now on Digits good afternoon and welcome Simon Constable and a we have Jen Valentino ... and John Jannarone thank you both for joining us ... and shown within the last hour you just go all the conference call on this ... tale of wins that its two point four billion to acquire ... GSI Mocken marketing services company ... on that's going to be good for the day ... why why specifically designed to meet Depfa Mentawai doing this will sound I think that ... if you look the numbers last couple years it's incredibly clear that as E-Commerce grows Amazon is taking a much bigger share in the UK this and so what ... they might you would use this transaction is get ... the hundred eighty or so big for two more retailers are ... working with TSI right now to start selling some of their products on Tuesday and if you do that ... you're going to potentially Cambria to raise the profile of the day gift shop or something a little bit more like with Anisa getting from Amazon and recognizing that brand name ... and so the thing that Amazon has really been able to do is offering deals on shipping and this can entice people into using their services that ... sort of ... or is it welling up ... the thing is actually ... right now GSI Commerce own Zumwinkel shop around and they offer a very similar package prepay seventy nine dollars during the depreciates Shorenstein is the same price as I was on red wine ... yet many ageing but to give it to stop it Yeh that's that's right well I've ... you um well I think the good returns on time on Saturday and that's been done ... but some whispered about is the gets it's a hundred eighty retailers right ... that they're working with all the wrong shop runner but ... it's not clear and this is something that when you watch closely ... on how much DeBaise can be involved with shop runner ... is or was taking thirty percent of that so it isn't meant to jam I gotta ask you um wising Amazon's top holding is this bad news for Amazon forces community can use for both companies' twenty ... I think that this could be inching to see me as more of a competitor to Amazon so I think it's great if I at this point whether it's willing and the ... bad news for ... the economy is ... out ahead in this space right now I mean ... E-mail and people think that the think mostly at auctions and that part of their business hasn't been doing as well ... and when he got into it looks kind of ... all I know it's it's it's hard to think of it that way for me anyway that is all it looks old ... Amazon looks of a fresh new is this gonna ... I began after we design stuff and get to get GSI in that will help with that I think one thing that's very much a lien on Amazon the experience is very streamlined right you know where it's coming from ... when you are you going to need a ... knowing you have to figure out where it's coming from ... the payment system is not quite as smooth and so ... the I think that's the idea is to try to offer some the things that people really like getting Amazon keeps bringing back there I mean ... how Amazon sales in North America were up forty six percent last year ... it is for a four percent ... Irish as you walk Amazon's it's very well but on the income as did a two point four billion dollars that seems to be lost money for ... for what in some ways looks like a little bit of a court next month record night with some big box retailers ... and a hey presto we we we got until justice and technology in that too I realize that is not too much that someone come along and get some some of my bedroom ... and do some more ... I think and feel that they Ardi had with some of these stories are important mean this is really kind of awful for ... you may know that something that they do need to sell and you know I'm not sure if they could have done this in house right ... and he deftly has been a problem for them it's only House last Wednesday before the new high ... looking the is a fifty one percent premium that's a lot of the other hand ... you got those Iidate and the brick and mortar retailers ... feelin' like to lose in this race to Amazon so you know to ... bring the two groups together and I think it's probably not the worst idea so analysts like to ... wish all say stood stay with us down stay with this gem wheat and now to Google which said it wants to make your phone ... and say you what's up when they do expect some very targeted ads will run on the phone with the story we have the was Fidel to MAF Rossi in San Francisco and it is the Desales on this what what is dual planning to do ... ruble's working with Citigroup ... and MasterCard ... and Hirokazu what they wanted to do more to make it so that your phone and its reactors or digital Wollan ... so if you're carrying around in the music made famous when you go into the store ... you can redeem coupons and discounts on ... and in what ... the what this would be really wanted to hear is ... able to target ads ... to people ... on their phones will be able to say Hey ... you're near ... the store you know they have this awful thing you ... know covered in it and you can read unitary reasoned that with the fear ... of which are shown their other companies like the one for Oregon State the same thing ... what's unique about this is that they're using this NFC technology your filthy kitchen technology that's ... out of the big buzzword right now on the mobile space ... and this is being integrated into I'm not one of the Android models on Android phones ... earlier Markit and future ones ... Research in Motion which makes the BlackBerry also was in this technology this is all about when people ... make payments ... directly ... in store and heard in stores the reason why this could be useful to retailers is ... here is another way for them to to target consumers in around about ... I mean here's a weaker than to get good data on exactly ... in which consumers are coming into their store Houdini news confirms ... how so so much it all ... Intel ... will ... stay with cement ... a warrant by this pink targeted today that an SAP after stance on Facebook we got them and on the phone to ... combine remaining question is how much consumers know about that that that that they're giving out I mean if if if the stand ... at and where you have to opt in to share in that and you know I know what you're getting Foursquare for pamphlets trying to do something ... the last ... time but clearly people know that they're sharing their location information and that the question is really whether ... I'm ... hearing use of this system overall to paint with your phone is going to be predicated on sharing and that whether you just can't pay you if your phone if you don't feel safe to say I think that's going to be so bored with the ... deal with the company he founded it that it would be good if you come ... here basically to do just that you have to get the data which it would you do that's a mostly didn't happen what you ... some time in awhile I know I think we we warm up the stuff over time went on to something that I need ... when that on this is this is this is just another reason why even a means to act when it got a talented talked about wanting to allow customers to shop ... you know I'm Africa more locations using Paypal ... can't you get well maybe you know ... Mr. this to iGi aside until the close working someone like that I mean clearly many as we can see people are moving fast on the Senate is sitting with us wanted Bring MAF back and I'm yet what will the boys of course it is a financial data how secure is like an updated study guides for that act as it were up its when your phone and I'm one of the device's official pass on what what we're hearing about that ... Persepolis is important to note that the risks are still going to be assumed by ... the same companies that system and now you know our credit card companies ... and banks that they did try to make sure that their unauthorised purchases ... they can deal with them I talk to analysts from the teacher pay Nick Holland ... who said that this technology is actually pretty sophisticated ... and that means more secure than ... on you know having people swipe I credit her with a magnetic stripe on it so ... we know will we will see when I think it's dumb either ... I don't think it's anything new more risky than that ... maybe no more risky but I don't agree to bring you went on to do with or something we don't need more of the online ... so I mean cutting that the mobile ... blood ... bank online but many thanks for the three D effect ... the psychological issue well yes I mean look I think that that's going to change me and I'm ... for one thing ... the average at the average shopper now on it's on ... you know ... increasingly aware of the staff the casino here has been around long enough ... however once warmed up to its end and ... might not have been slain soldier was can be some people holding back but ... I'm in overtime stretch Mattel will FNF any I think this near field communication technology actually been around for awhile it's a lot of cards right now ... and it's at ... it's still not clear how quickly people are going to ... get new city using an innovative email bond funds in your pointed out that have BlackBerrys looking at the sincerity in one enduring found that ... there ... may ... lead to an app and it still means you have this technology in the consumer is going to get use to a ... mean face it might take a little while Mexican local morsel SIG AmazonTote's Ozawa's on the new technology comes out that the stay with us thank you Brian much MAF Rossi ... fall weeks to announce the question all ... Groupon's all my coupons and six election ... maybe when you think you're getting along like a bomb in him getting quite as good a deal as you think you I could cost you ... big ... reason why we go the Telegram cheese with small money into so ... she's with us now and Kelly on ... let's go through some of these have been writing about stuff ... that it has signed off on the group on ... not really ... the LSE sites have built their reputation for ... social shopping fifty percent off deals to the local restaurants spas ... other attractions that you're interested in but we're seeing more instances player it's not really a discount because you're getting on its exclusions for restaurant might be PPL or a restaurant but only getting thirty dollars voucher for the reserve recent Group one incident where people bought vouchers for STT florist they were getting it at twenty dollars voucher to a ten dollars the debonair went to buy the flowers they saw a step worth five to ten dollars higher than other people who went to FTP SA so definitely some problems there watch out for them ... to him with ... twenty think that ... I think this is really an overall question of ... how these sites are going to see me and I think ... I'm going to Obama or any of the other side like this and I've had a good experience that ... um I think ... their main questions about how small business is you know whether this is really helpful for them ... and that ... he I think ... it remains the scene where businesses and they keep coming back or if they're going to do things like Kelly was talking about with ... you ... making sure it's not quite fifty percent on word ... filtered rejection ... the next twelve to these OI's fun there is a bit bizarre across foam on every piece of thinking I probably would've been ... lots of good ... luck cashing in on the local beer was that mean ... one of the other day outlooks for caring for consumers to use these sites is that oftentimes they don't like it when I check in on adventures available so you'll notice several thousand people that are getting in on its popular restaurant deal activity called a traitor redeem it will be secure in a week and getting that cap upside is that you got how about six months from now and that all things isn't it convenient for people who ... were hoping the news about Chet for special occasions or they just they they would use it to walk away ... Anzac sometimes they're not even if it's the tall ... our combined rough map is we got some breaking news coming out on the vs Datacom ... Square co-founder Jack Dorsey confronts his return ... to the company to suit whether they will remain CEO of Square which is another company if I've got that right to put them in a move on ... to the next one Kelly walked up what do you would think Mike Goodluck cashing in on the local ... local deal the you have an example of sour on five o five in Austin ... on what happened that ... that they sold in just twenty four hours and knocked down trees to cover every open spot when it for Europe and the steps to make a lot of their regular customers are happy to its stock is that after users couldn't really get those appointments ... it's the regular people who wanted to go ... and that their response was of was ultimately to extend the deal they if they if they shut down everything on LivingSocial to be able to ... know no more BoComm were purchased that ... but they are letting people who didn't get the deal Tuesday and ... extend past that when you're expiration date it was that everyone in ... your time to form on the Metro why am I met some ... of the likely want to use the coupon twenty twenty mean if you paid money for it and isn't right ... what you think so there's actually a thriving market secondary market for these deals and a big pitch for the businesses that are produced each year is often as Mideast forty percent of users and offered you the scoop on tax free money for the business and ... we were together or bind users can do it she ... said that's their very excited about having a free money ... up for someone who is interested in getting the deal online on ... these sites ... you can check out sites like likes to recoup from where you can often get some of those deals that somebody decided he didn't want to get it for even cheaper than you would've gotten the first time around and are on ... the thank you Brian much Kelly crime with small money and check out more ... about ten things you need to know that will cost you money you don't know that I'm very quickly of jam on tell me you have all won and then on Tuesday telling when it ... reviews ... the above the fold Credit last that ... you have you bought it at all oh well I've never bought one anyway that set off a city that is now twenty summit coming to my ... present Obama is scheduled to speak at seven thirty p m Eastern on U S involvement ... in Libya while live coverage here on the beest dot com ... The Big a sub our ... marae board of a post speech analysis why Chrome probably from this table so if you will want to check them out in the meantime that's it That's digits for now